Kaycee Industries Ltd Management Discussions.

The Kaycee Industries Limited is pioneer in the field of engineering offering high quality products and services to its clients in India. The Company forayed into and started manufacturing in the year 1942 and developed manufacturing its products. The Company now manufactures high-end electrical equipment, indigenously designed through extensive research and development in the vital fields, across the country to its clients. The products are:

• Water Meter
• Lugs
• Rotary Switch
• Limit Switches
• Toggle Switches
• Cam
• Rotary Toggle Switches
• Monitoring Device
• Timer
• Universal Counter
• Temperature Indicator/Controller
• P.B & Lamp
• Digi count
• Digital Time Totalizer

By adopting continuous R & D efforts, it has been possible to update the existing products and processes, improved customer satisfaction, improved quality and performance of the products, making more cost effective products and upgrading products to latest relevant standards, right balance of In-house manufacturing and outsourced manufacturing, increasing strategic flexibility, cost management and asset-lightness.

The Company increased investments in process automation, helping optimize costs, strengthen efficiency and enhance transparency. Product efficiency: The Companys products are marked by higher fulfilment, enhancing the customers price-value proposition.

Kaycee Industries Limited products are specially designed and developed using state of the art and indigenous technology to have high reliability and long life. Continual improvements are being done based on current technology and customer feedback. Design and development centre is well equipped with required software, qualified engineers and latest national and international standards. The company is in the process of developing of variety of new product with the help of the holding company that will be implemented in the coming years.

The Company has taken several bold steps to remain competitive and to ensure survival by reducing cost and streamlining the overall operations process. Despite severe competition and reduced demand, optimism about the mid and long term growth prospects remain and will continue to remain in the coming years.

The Company is engaged in a number of business-reinforcing initiatives such as offering quality products at competitive prices, addressing a wider customer base, entering uncharted territories, enhancing brand awareness of the segment through marketing campaigns and educating customers about advanced and upgraded product features.


Global economic growth has projected itself into a negative growth in 2020 due to Covid 19 pandemic, worse than during the 2008-09 financial crisis. Rolling lockdowns and social distancing restrictions on account of the pandemic are expected to significantly impact economic activity in all the major markets and cause demand compression. In the immediate aftermath, enterprises are expected to downscale current investments, defer planned initiatives, cut costs and conserve cash with a necessity to enhance social cost. While this could inject volatility into Kaycees revenue growth, the company expects to gain its market share from the resultant business consolidations. As economic recovery progresses, enterprises operating with pared down workforces are likely to increase outsourcing to build scale in operations to meet rising demand.

Your company mainly operates in the domestic market with a wide range of products for Industrial segment and a small portion of its production is exports mainly to Middle East countries. Businesses across China were disrupted since last year due to the novel Covid-19 outbreak. Many countries are looking for alternative source preferably India. This may give more opportunity for us to play an important role in exporting our products to different part of the world. Considering the vintage of 75 years presence in the market with reputation in electrical sector will give us an additional comfort for business potential in the coming years both in the Domestic as well as in the International Market.

The Company has a strong, well established distribution network. The Company has a wide range of products in the electrical segmentwith new product variants. Distribution channels being expanded regularly. The Company are hopes that its sustained efforts in all the areas will secure to it a very good and substantial business in the future. Barring unforeseen circumstances, the Company expects to increase its volume of business in the current year itself.


Electrical equipment/products manufacturing is a very important sector for a developing country like India. The demand for electrical products is expected to grow progressively. Keeping in view the above, the long term outlook for the sector appears bright. There is an ample scope and opportunity for companies having business in these sector.


Risk management is an integral function of the overall management and is embedded across all of the business processes undertaken by the Company. Your Company believes it is essential to identify and manage risks to reduce uncertainties and to ensure continuity of operations. To manage risks, the Companys Management team continuously assesses and monitors business practices, current developments, etc. ensuring a smooth flow of operations adhering to stringent guidelines. The Company has a risk management framework in place, with processes to strategize, monitor, identify, assess and mitigate risks that could impact sustainability of business operations. All fixed assets are covered by the insurance policy and the renewals are made in time.

We are committed to providing the highest degree of safety to our employees, especially at the factories. Regular machinery inspections are important to ensure that the functionality of the machinery is up to date and does not impose any potential hazards that could cause accidents at the workplace. Periodic maintenance checks to equipment are conducted to assure that they meet acceptable safety requirements. The Company also actively manages and controls risks arising from credit, raw material price fluctuation, besides the financial risks which include liquidity management and close monitoring of interest costs.

Internal Control Systems.

The Company and the Management have adequate internal control systems in place to safeguard and shield the Company from losses and in ensuring proper use of its assets. This also ensures that the Companys assets and interests are carefully protected, and all the transactions are appropriately authorized, recorded and presented to the top management. The Company always adheres to prescribed guidelines and follows all Accounting Standards prescribed for maintenance of books of accounts and reporting of financial statements. The appointed independent internal auditors monitor and report on the effectiveness of the internal control systems of the various areas of operations Key matters that are reported in the Internal Audit are brought to the notice of the Audit Committee of the Board of Directors and corrective measures are recommended and appropriate actions are taken. The Internal Control systems ensure the business operations function efficiently and the applicable laws, rules, regulations, policies of the Company are followed, in addition to safeguarding the reliability of financial reporting.

FINANCIAL PERFORMANCE AND OPERATIONAL EFFICIENCY i) The Company has achieved a turnover of Rs.22.72 Crores for the FY ended March 31, 2021 there was a drop of Rs.0.71 Crores when comparing with FY 19-20 and this was mainly due to pandemic since march 2020 leading to lockdowns during the year; ii) The Finance cost has gone up a little in view of the extra utilization of borrowed funds and an increase in working capital limits from the Banks; the interest for the financial year ended March 31, 2021 is Rs.7.06 Lakhs as against Rs.6.74 Lakhs for the corresponding previous period. iii) The operating profit of the company has decreased due to continuous rises in prices of raw materials; the profit after tax for the financial year ended March 31, 2021 is at Rs 84.80 Lakhs as against Rs.138.00 Lakhs for the corresponding previous period, with a decline of 38.55%.

iv) The EPS (Earning per Share) for the financial year ended March 31, 2021 is Rs. 133.62 for a face value of Rs.100 per share, as against Rs.217.33 for the corresponding previous period

Human Resources Development

The Company maintains a cordial relationship and healthy atmosphere with its employees at all levels. Human resources are considered the most important and a valuable asset of the Company. Continuous commitment to upgrading skills is an integral part of the human resource development Policy of the Company. The focus has always been towards creating a rewarding and nurturing environment for employees. The Company is an equal opportunity employer and promotes diversity in its workforce. Equal opportunities are given to optimize their potential and improve their standard of living.

The Management continues to pay special attention to various aspects like training, welfare and safety and thereby further strengthening the human resources. To face the challenging business environment, the Company continues to build the capability of its human resources through various initiatives in development and training of employees at all levels.

Various internal as well as external development programs were organized in the year to develop and motivate the employees. Relations with the employees remained cordial throughout the year. The work and jobs at all levels in the Company are designed, organized and managed effectively by interaction between the management and employees. The Company had a total manpower of 74 as on March 31, 2021.

Cautionary Statement.

The Financial Statement that are enclosed to this report are in conformity with accounting principles generally accepted in India. Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimation and expectations may somewhat be ‘forward looking statements within the meaning of applicable law and regulations. Management has based these forward-looking statements on its current expectations and projections about future events. Such statements involve known and unknown risks, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labour relations, exchange rate fluctuations, interest and other costs and may cause actual results to differ materially.

For and on behalf of the Board

Jitendra Vakharia Rajesh Kumar
Director Director
Date : May 12, 2021 (DIN : 00047777) (DIN : 00003126)